The off-price retailer sources excess stock from stores in Australia and around the world before offering it to customers at a bargain price.

Some of the world’s best designer brands including Ben Sherman, Nautica, Michael Kors, Gucci, and Louis Vuitton are among its stock.

It sources excess stock from Australia and around the world to keep prices lower. (9NEWS) ()

"Let's say a department store cancels an order, a manufacturer makes too much product or a vendor's got too much stock they want to clear at the end of the season, we go in, we negotiate great value on that product and we pass those savings on," TK Maxx’s Tessa Buenen told 9NEWS.

"In the past three years, Australia's seen a whole host of new retailers appear on the scene, and because they've got more excess stock - along with the fashion houses - that's the way TK Maxx works. It sources that excess stock here and overseas and keeps the prices lower.

TK Maxx will open seven stores across Sydney, with further stores to open in Newcastle, Wollongong and Ryde. (9NEWS) ()

"There's cushions here for as little as $14.95 and they're half of what you would pay in another store."